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I Asked ChatGPT What Would Happen If Billionaires Paid Taxes at the Same Rate as the Upper Middle Class
There are many questions that don't have simple answers, either because they're too complex or they're hypothetical. One such question is what it might mean for billionaires to pay taxes at the same rate as the upper middle class, whose income starts, on average, at around $168,000, depending on where you live. Find Out: Read Next: ChatGPT may not be an oracle, but it can analyze information and offer trends and patterns, so I asked it what would happen if billionaires were required to pay anywhere near as much as the upper middle class. Here's what it said. A Fatter Government Larder For starters, ChatGPT said that if billionaires paid taxes like the upper middle class, the government would bring in a lot more money — potentially hundreds of billions of dollars more every year. 'That's because most billionaires don't make their money from salaries like upper-middle-class workers do. Instead, they grow their wealth through investments–stocks, real estate, and businesses–which are often taxed at much lower rates or not taxed at all until the assets are sold,' ChatGPT told me. Billionaire income is largely derived from capital appreciation, not wages. In other words, they make money on their money through interest. And as of yet, the U.S. tax code doesn't tax 'unrealized capital gains' so until you sell your assets, you could amass millions in appreciation and not pay a dime on it, ChatGPT shared. Learn More: What Do Billionaires Pay in Taxes? Right now, many billionaires pay an effective tax rate of around 8% or less, thanks to loopholes and tax strategies. Meanwhile, upper-middle-class households earning, say, $250,000 might pay around 20% to 24% of their income in taxes. (Keep in mind that the government doesn't apply one tax bracket to all income. You pay tax in layers, according to the IRS. As your income goes up, the tax rate on the next layer of income is higher. So you pay 12% on the first $47,150, then 22% on $47,151 to $100,525 and so on). So, if billionaires were taxed at the same rate as those upper-middle-class wage earners, 'it would level the playing field–and raise a ton of revenue that could be used for things like infrastructure, education or healthcare,' ChatGPT said. The Impact on Wealth Equality I wondered if taxing billionaires could have any kind of impact on wealth equality, as well. While it wouldn't put more money in other people's pockets, 'it could increase trust in the tax system, showing that the wealthiest aren't playing by a different set of rules,' ChatGPT said. It would also help curb 'the accumulation of dynastic wealth,' where the richest families essentially hoard wealth for generations without contributing proportionally to the system. But it's not a magic bullet. 'Wealth inequality is rooted in more than just taxes–wages, education access, housing costs, and corporate ownership all play a role,' ChatGPT said. Billionaires paying taxes doesn't stop them from being billionaires, either, it pointed out. Taxing Billionaires Is Not That Simple While in theory billionaires paying higher taxes 'would shift a much bigger share of the tax burden onto the very wealthy,' ChatGPT wrote, billionaires are not as liquid as they may seem. 'A lot of billionaire wealth is tied up in things like stocks they don't sell, so taxing that would require big changes to how the tax code works.' Also, billionaires are good at finding loopholes and account strategies — it might be hard to enforce. What's a Good Middle Ground? We don't live in a black and white world, however. There's got to be a middle ground, so I asked ChatGPT if there is a way to tax billionaires more, even if it's not quite how the upper middle class are taxed. A likely compromise would come from a policy decision, which isn't likely to be forthcoming anytime soon. President Donald Trump's One Big Beautiful Bill only offered more tax breaks to the wealthiest. However, policy proposals that have been floated, include: A minimum tax on billionaires where they might pay around 20% of their overall income Limiting deductions and closing tax loopholes that allow them to significantly reduce taxable income Tax unrealized gains (those assets that have only earned but not yet been sold), gradually. ChatGPT agreed that billionaires could pay more than they currently do, even if they don't pay exactly what upper-middle-class workers pay in percentage terms. 'The key is to design policies that are fair, enforceable, and politically feasible.' I asked how realistic such policy proposals are, and ChatGPT told me what I already knew: They're 'moderately realistic' but only with the 'right political alignment.' More From GOBankingRates 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses This article originally appeared on I Asked ChatGPT What Would Happen If Billionaires Paid Taxes at the Same Rate as the Upper Middle Class Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
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Union Pacific Corporation (UNP): Jim Cramer Reveals How Its Merger Could Succeed
We recently published . Union Pacific Corporation (NYSE:UNP) is one of the stocks Jim Cramer recently discussed. Union Pacific Corporation (NYSE:UNP) is one of the largest railroad companies in America. The stock has been a central part of Cramer's morning show after co-host David Faber became the first to speculate that the railroad industry could experience mergers due to the business environment in the Trump administration. During this appearance, Faber discussed reports about Union Pacific Corporation (NYSE:UNP) and Norfolk Southern in the advanced stages of a business competition. Faber shared that any deal would spur competitors to take similar action. As for Cramer, here's what he said: '[On talks of a merger] 5 year pledge to not raise prices, deal gets done.' Pixabay/Public Domain Cramer previously discussed railroad giant CSX merging with Union Pacific Corporation (NYSE:UNP): 'CSX is going to merge with Union Pacific, am I off the rails? I am in charge of the rails. It's just the way, the people refuse to believe that this is a different government.' While we acknowledge the potential of UNP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
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AT&T Inc. (T) Is Very Good At What It Does, Says Jim Cramer
We recently published . AT&T Inc. (NYSE:T) is one of the stocks Jim Cramer recently discussed. AT&T Inc. (NYSE:T) has been performing well in 2025. Its shares gained 22.7% year-to-date on the back of multiple factors such as robust subscriber additions. The stock gained 2% after the latest earnings report, which saw AT&T Inc. (NYSE:T) add 401,000 wireless subscribers to smash analyst estimates of 295,700 out of the park. The firm's strong performance made Cramer wonder how all three mega American carriers could simultaneously perform well, as logically, someone has to lose share for the others to thrive: 'But David, AT&T, has someone downgraded AT&T? I thought that AT&T was good. But how can AT&T and Verizon and T-Mobile do well? Cramer recently discussed AT&T Inc. (NYSE:T)'s stock in comparison to T-Mobile: 'You know, people like ATT. And I'm not against it. I like ATT, too. But, look what can I say, T-Mobile has been a huge, huge winner. Sievert is a winner. And before that Legere was a winner. But now the stock acts quite badly, and now we know. It's good to know the reason.' While we acknowledge the potential of T as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
